Structuring Leveraged Loans: Tax Concerns, Multinational Entities
Section 956 Deemed Dividend Rules, Limits on Interest Deductions, Tax Distributions, Corporate vs. Pass-Through Borrowers
Note: CPE credit is not offered on this program
Recording of a 90-minute premium CLE webinar with Q&A
This CLE course will examine the impact of tax reform on leveraged financing transactions. The panel discussion will include how the new law might affect credit support between affiliates in multinational enterprises, structuring and placement of debt, interest deductibility, and provisions regarding prepayment and permitted tax distributions.
- Tax reform: an overview of new provisions, new tax rates
- New limitations on the deductibility of interest
- Impact on multinational groups
- Impact of participation exemption and proposed 956 regulation on credit support
- More foreign entities deemed CFCs: effect on credit support to noncorporate U.S. shareholders
- Tax distribution and prepayment provisions
The panel will review these and other key issues:
- What are some of the implications of tax reform and other recently proposed regulations for multinational enterprises seeking leveraged financing?
- To what extent do the new 956 regulations allow foreign affiliates more flexibility in providing credit support to U.S. borrowers without triggering adverse tax consequences? Will lenders begin to require such credit support?
- How might the reduced corporate and special passthrough tax rates affect tax distribution provisions for borrowers that are taxed as corporations and borrowers that are taxed as partnerships?
- Why might lenders now require borrowers to make prepayments with foreign proceeds?
- How will new rules defining CFCs impact the ability of multinational borrowers that use specific sources of credit support?
Mark Dundon, P.C.
Kirkland & Ellis
Mr. Dundon's practice focuses on the tax aspects of complex mergers, acquisitions, divestitures, joint ventures,... | Read More
Mr. Dundon's practice focuses on the tax aspects of complex mergers, acquisitions, divestitures, joint ventures, restructurings and financing transactions, primarily in the energy industry. He has represented large and mid-cap private equity funds and their portfolio companies, as well as large public and private corporations.Close
Anne Kim, P.C.
Kirkland & Ellis
Ms. Kim has a broad-based practice and handles a wide range of complex transactions, advising private equity funds,... | Read More
Ms. Kim has a broad-based practice and handles a wide range of complex transactions, advising private equity funds, public and private companies and publicly traded partnerships on the tax aspects of mergers and acquisitions, divestitures, spin-offs, cross-border transactions, formation of joint ventures and capital markets and debt financings.Close